Since February 2026, NSSF contributions follow Year 4 of the Third Schedule to the NSSF Act. Employees and employers each pay 6% of pensionable earnings, split into Tier I (up to the Lower Earnings Limit of KES 9,000) and Tier II (between KES 9,000 and the Upper Earnings Limit of KES 108,000). Enter your monthly pensionable pay to see each part.
Year 4 limits (from February 2026)
| Item | KES |
|---|---|
| Lower Earnings Limit (Tier I) | 9,000 |
| Maximum Tier I, employee | 540 |
| Upper Earnings Limit (Tier II) | 108,000 |
| Maximum Tier II, employee | 5,940 |
| Maximum total per employee (employee + employer) | 12,960 |
How it works
Tier I is 6% of pay up to KES 9,000. Tier II is 6% of the part of pay above KES 9,000, up to KES 108,000. Pay above KES 108,000 attracts no further NSSF. The employer matches the employee’s contribution, so the total remitted is twice the employee figure. For example, at KES 50,000 the employee pays KES 540 + KES 2,460 = KES 3,000, the employer pays the same, and KES 6,000 goes to NSSF.
Under the NSSF Act, an employer with a qualifying registered scheme may be allowed to send Tier II contributions to that scheme instead of NSSF. The amount is the same either way.
NSSF and tax
Your NSSF contribution is deducted before PAYE is calculated, so a higher NSSF deduction slightly reduces your tax. The PAYE calculator shows the combined effect.
Frequently asked questions
What is the maximum NSSF deduction in 2026?
KES 6,480 a month from the employee (KES 540 Tier I + KES 5,940 Tier II), matched by the employer, for a total of KES 12,960.
When did the new NSSF rates start?
The Year 4 rates took effect in February 2026, according to NSSF’s notice to employers.
Do I pay NSSF on salary above KES 108,000?
No. Contributions stop at the Upper Earnings Limit of KES 108,000.
Does NSSF reduce PAYE?
Yes. NSSF contributions are deducted from pay before income tax is calculated.
Related: PAYE & net salary calculator · SHIF calculator · NSSF calculator · Housing Levy calculator · Bank loan calculators
Sources
- NSSF – Notice to Employers, Year 4 (2026) Contribution Rates (checked 13 October 2026)
- KRA – Pay As You Earn (PAYE) (checked 13 October 2026)
